New York: Elon Musk-run Tesla has reported $3.3 billion in net income for the third quarter (Q3), more than double from a year ago, and its automotive revenue jumped 55 per cent from the same period last year.
In a letter to the shareholders, the electric car-maker said late on Wednesday that the third quarter was another strong quarter with record revenue, operating profit, and free cash flow.
“In the last 12 months, our free cash flow exceeded $8.9 billion. Our operating margin reached 17.2 per cent in Q3,” the company said in a statement.
Tesla’s automotive revenue was $18.69 billion, an increase of 55 per cent from a year ago.
“We remain focused on increasing vehicle production as quickly as possible, by increasing our weekly build rate in Fremont and Shanghai and progressing steadily through the production ramps in Berlin and Texas,” said the company.
Tesla Inc Chief Executive Elon Musk on Wednesday said he expected the company would miss its vehicle delivery targets this year, but downplayed concerns about softening demand after the company’s revenue missed Wall Street estimates.
The billionaire told analysts on a conference call there was excellent demand for the fourth quarter, addressing investor concern that buyers could be discouraged by the weak global economy and high prices for Tesla vehicles.
But he said some logistics challenges would persist, with fourth-quarter deliveries tracking under 50% growth while production hit 50% growth.
“I wouldn’t say we’re recession proof, but it’s certainly recession resilient,” he said.
Shares fell 4.3% in after-market trading.
Tesla is expanding fast despite global economic jitters, and investors are closely watching for signs that the cooling economy would hurt demand.
The company said it had a negative foreign exchange impact of $250 million on its earnings as the U.S. dollar strengthened against major currencies.
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